KyberSwap introduces an exciting opportunity for Elastic liquidity providers (LPs) with six new Frax gauges across different chains. These gauges empower LPs to earn more rewards by staking their assets in various liquidity pools. Here’s how you can enhance your yield farming experience with KyberSwap and Frax Finance.
We’re introducing 6 new Frax gauges across several different chains, creating fresh opportunities for LPs. Here are the details of the available pools:
| Chain | Pair | Fee Tier |
|---|---|---|
| Ethereum | FRAX-USDC | 0.008% |
| Ethereum | frxETH-ETH | 0.01% |
| Ethereum | frxETH-FRAX | 0.04% |
| Polygon PoS | FRAX-USDC | 0.04% |
| Arbitrum | FRAX-USDC | 0.04% |
| Optimism | FRAX-USDC | 0.04% |
With KyberSwap Elastic’s capital efficiency, re-investment curve and aggregator routing; this setup can bring more organic volume to FRAX, and therefore more yield to FRAX LPs on KyberSwap.
Frax gauges further enhance yield for LPs by distributing FXS emissions among LPs who stake their assets.
More info on Frax gauges can be found here: https://docs.frax.finance/vefxs/gauge
Participating in KyberSwap Farming and Frax Gauges
1. Select the Eligible Chain:
On kyberswap.com, switch to the chain of the pool/farm you want to participate in.
*We will be using Optimism chain in this example.
2. Access the KyberSwap Farms Page:
Then click [Earn] → [Farms].
3. Filter for Static Farms and Choose the Frax Farm you want to participate in:
Under Static Farms, move your mouse cursor over the token pair of the farm you want to participate in, and click on it, to get to the Add Liquidity page.
4. Choose a Preset Range, Deposit Amount and Add Liquidity:
On the [Add Liquidity] page, choose one of the active and available farming range-presets, and enter your deposit amounts. If required, click [Approve] for each token to allow KyberSwap’s smart contract to use your tokens. Then click [Preview], after which you will see a preview of your selections. Then click [Supply].
Note: It’s crucial to provide liquidity within the farm operator’s defined price range to earn rewards in the farms
(Please also note that in the rare case your supplied price range does not cover the current market price, you can still earn farming rewards as long as you provide liquidity within the farm operator’s defined range-preset.)
5. Receive NFT as Representation of Liquidity:
After adding liquidity, you’ll receive an NFT representing your liquidity position. Optionally, you can check your NFT in Opensea, as illustrated:
6. Stake NFT in Static Farms:
Back on the [Farms] page, you can locate the corresponding Static farm and stake your NFT by clicking on the newly activated “+” button.
Then click [+ Stake Selected].
Now, you can see your balance staked in the farm under [My Deposit].
7. Receive KS-FT Token (ERC-20):
Once you stake the NFT, you’ll receive a KS-FT token (ERC-20) representing your share in the farm. Here are the token contract addresses you can import into your wallet to check, based on which farm you are participating in:
Ethereum:
FarmingToken (FRAX-USDC .008 pool): 0x029145D747CF9e0376bb9b133E127B7f8AAe9Eb5
FarmingToken (frxETH-ETH .01 pool): 0x97cB76cbb84Aa35deaF1dAC3101a506588B6c197
FarmingToken (frxETH-FRAX .04 pool): 0x049b423f0cBcc28c1bB96b51f977f9D1229F5868
Arbitrum: FarmingToken (FRAX-USDC .04 pool): 0x97cB76cbb84Aa35deaF1dAC3101a506588B6c197
Optimism: FarmingToken (FRAX-USDC .04 pool): 0x97cB76cbb84Aa35deaF1dAC3101a506588B6c197
Polygon: FarmingToken (FRAX-USDC .04 pool): 0x1Bc14986bf9F002D876B7cE645C4b91Af79B3C3F
8. Stake KS-FT Token into the corresponding Frax Gauge:
Go to the Frax gauge staking page, and search for “KyberSwap”. Select the corresponding gauge for the pool. Don’t forget to connect your wallet.
In this example, the FRAX-USDC gauge on Optimism is shown:
Now, stake your ERC-20 KS-FT token into the corresponding gauge to earn additional yield. Also, please note you need to specify your lock time to activate a weight multiplier.
Now, you can see your staked KS-FT position here:
Note: Remember, as you participate, there are two types of boosts available to enhance your rewards—max locked veFXS and time-locked gauges. The more veFXS you hold and the longer you lock, the greater the weight of your position in comparison to other participants.
Claim Rewards & LP Fees Flow (while still holding the KS-FT)1.
1. Claim Rewards:
Users can claim FXS rewards by going to the Frax gauge staking page, locating their position, and clicking [Claim] under Collect Rewards.
2. Claim LP Fees:
Users can claim LP fees through the KyberSwap UI. Click [Earn] → [My Pools]. Locate your liquidity position and click [Collect Fees].
Withdrawal Flow
1. Unstake KS-FT Token from Frax Gauge:
When you’re ready to withdraw, start by unstaking your KS-FT token from the Frax Gauge.
Then, click [Withdraw].
2. Receive KS-FT Token in Wallet:
The unstaked KS-FT token will be returned to your wallet.
3. Withdraw Liquidity:
To withdraw your liquidity from KyberSwap, click Earn → My Pools. Locate your liquidity position and click Remove Liquidity.
Choose the max option if you wish to withdraw all of your supplied liquidity.
After you confirm, the NFT that you have previously staked into the farm will be automatically un-staked.
Embrace this journey into DeFi and liquidity provision, as you contribute to the growth and success of the ecosystem. Happy farming!
Disclaimer: Ensure to review and understand all terms, risks, and procedures before participating in KyberSwap Farming and Frax Gauges.
